Right now, here at home in America we have a problem.
A really big problem.
Our politicians think it can be solved by jobs, but they make no distinction between jobs paying less than $15.00 per hour and those making more than $15.00 per hour.
After all, a job is a job, isn’t it?
And our economists blame everything on the sub prime mortgage crisis which ole Virgil maintains is but a symptom of what is happening because believe me, I’ve been there, done that, and got the emotional scars to prove it, not to mention the financial ones.
“It felt like, finally, school was paying off,” he said. “I knew the world needed people who can build things.”
At the same time, however, the electronics industry was changing, and Apple — with products that were declining in popularity — was struggling to remake itself. One focus was improving manufacturing. A few years after Mr. Saragoza started his job, his bosses explained how the California plant stacked up against overseas factories: the cost, excluding the materials, of building a $1,500 computer in Elk Grove was $22 a machine. In Singapore, it was $6. In Taiwan, $4.85. Wages weren’t the major reason for the disparities. Rather it was costs like inventory and how long it took workers to finish a task.
“We were told we would have to do 12-hour days, and come in on Saturdays,” Mr. Saragoza said. “I had a family. I wanted to see my kids play soccer.”
Modernization has always caused some kinds of jobs to change or disappear. As the American economy transitioned from agriculture to manufacturing and then to other industries, farmers became steelworkers, and then salesmen and middle managers. These shifts have carried many economic benefits, and in general, with each progression, even unskilled workers received better wages and greater chances at upward mobility.
But in the last two decades, something more fundamental has changed, economists say. Midwage jobs started disappearing. Particularly among Americans without college degrees, today’s new jobs are disproportionately in service occupations — at restaurants or call centers, or as hospital attendants or temporary workers — that offer fewer opportunities for reaching the middle class.
Even Mr. Saragoza, with his college degree, was vulnerable to these trends. First, some of Elk Grove’s routine tasks were sent overseas. Mr. Saragoza didn’t mind. Then the robotics that made Apple a futuristic playground allowed executives to replace workers with machines. (Moderator: And nowFoxconn wants to use robots, because they’re not only cheaper than paying wages, robots are also easier to manage and “don’t commit suicide”.)
Some diagnostic engineering went to Singapore. Middle managers who oversaw the plant’s inventory were laid off because, suddenly, a few people with Internet connections were all that were needed.
Mr. Saragoza was too expensive for an unskilled position. He was also insufficiently credentialed for upper management. He was called into a small office in 2002 after a night shift, laid off and then escorted from the plant. He taught high school for a while, and then tried a return to technology. But Apple, which had helped anoint the region as “Silicon Valley North,” had by then converted much of the Elk Grove plant into an AppleCare call center, where new employees often earn $12 an hour.
There were employment prospects in Silicon Valley, but none of them panned out. “What they really want are 30-year-olds without children,” said Mr. Saragoza, who today is 48, and whose family now includes five of his own.
After a few months of looking for work, he started feeling desperate. Even teaching jobs had dried up. So he took a position with an electronics temp agency that had been hired by Apple to check returned iPhones and iPads before they were sent back to customers. Every day, Mr. Saragoza would drive to the building where he had once worked as an engineer, and for $10 an hour with no benefits, wipe thousands of glass screens and test audio ports by plugging in headphones. (Moderator: We now have about 27 million Americans in the same boat as Mr. Saragoza, thanks in part to American corporations like Apple.)
Click here to read the article.
What I just described is part of an excellent article by Bud and what he describes is happening all across America and this is why the mortgage business is slowly but surely being exterminated.
I made the leap from technology to Real Estate because of what has happened in that article above and I now see it playing out in the Real Estate industry, so if you are a realtor like myself, or a small town mortgage banker, or a title company or any of the thousands of companies that make a living off of the real estate industry, you need to be standing up and bringing our jobs home.
At the same time, you also need to be aware that this will devastate the people in other countries who have risen from destitution to middle class in their country as I attempt to describe in this article.
Many of you blindly follow your pied pipers off a cliff without thinking.
It doesn’t matter whether you are a republican and read the National Review or a democrat and read the New York Times.
It is time for you to take off your blinders of denial and reach out to your neighbor because whether he or she is a republican or a democrat, in the coming decades, or possibly generations you will be fighting side by side for the freedom and opportunity that you took for granted during your my side is right years.
What I’m about to describe is what is ultimately going to happen to you if you were in the middle class.
I can’t predict when, but just as Mr. Saragoza found out and as I myself have found out, their are no middle class jobs except for those that are already filled, unless you know somebody on the inside perhaps because of the filtering systems that we have built into our selection process.

- click on the picture to zoom in
Now, if you have never made more than about $20.00 per hour, you will not be experiencing for some time what those that have made more than $50,000 per year have made.
Think of it as three bell curves.
Something along the line of this one.

On the right hand side we have the Middle Class and they are already on the downward slope even though some of my friends that it has not happened to yet do not believe it will ever happen as they are ten foot tall and indispensable just like I thought I was.
In the middle we have the Working Poor and and they are still on the upward trend as they have not yet topped out.
These are the people making from minimum wage to maybe $20.00 or so per hour.
They had a finite number of jobs that were created by those entrepreneurs that left the middle class to start up their new companies and those that simply thought they could do a better job than their previous boss.
Many of them start up in garages similar to this, or in rented warehouse spaces.

But now these former Middle Class and even some of the would be Entrepreneurs are fighting for the Working Poor Jobs and at the same time wages are slowly but surely going down.
At the current time it is unnoticeable unless you look at some of the wage trends by job classification so many of the working poor do not believe this is happening either.
But at some point the Working Poor bell curve will top and it will begin its downward slope just as it happened to the Middle Class.
Now the corporate executives and the ultra wealthy do not believe it will ever happen to them because they control all the marbles in this game of life.
They are in the bell curve on the left hand side and they lag the Middle class bell curve which is trending down because of some of their actions and they lag the Working Poor bell curve which is still on the upward slope.
How far do they lag?
I can’t predict that, but I can guarantee with certainty that if we continue on this path, ultimately it will happen to the Corporate Executives and the Ultra Wealthy because when the sheep or cattle or slaves, meaning you and me do not make more than what it costs to live in our community, then at that point we will not be able to buy their widgets, oils, services, etc., and at that point they will be faced with the prospect of exterminating us, feeding us or some other nightmare scenario.
I know I’m looking way too far out in advance for the majority of people to even comprehend, but I can guarantee you that the leaders of China know that they have to control dissent with a strong fist, and they have to make sure that the people have what is necessary for them to get by, even if getting by is just a few crumbs more than the family next door have.
Because if the people do not have what it takes to provide for their family, they will revolt just as has happened throughout history in those Marie Antoinette moments.
Now I know you don’t believe me, so let me show you what is happening in my own life as an example.
I live a quiet, frugal existence now.
These are my expenses that I need to survive at the level I want to survive at, unless of course I can turn this madness around and get back into the race to be part of the 1%.
| Fixed Expenses |
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Child Support |
$ 520.00 |
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Phone/DSL/Fax |
$ 135.00 |
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Cell |
$ 85.00 |
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Rent |
$ 450.00 |
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| Variable Expenses |
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Electricity |
$ 165.00 |
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Propane |
$ 260.00 |
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Food, Gasoline, Misc |
$ 1,000.00 |
tank of gas a week, 75 food |
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Total |
$ 2,615.00 |
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Weekly |
$ 603.46 |
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40 hr week |
$ 15.09 |
minimum to survive |
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As you can see, I need a job that pays $15.09 per hour after taxes just to survive and I live about as cheaply as you can live with the exception of a few beers in the evening and sure I could cut that out and blow my brains out to end the thoughts that fill my brain in the evenings, but that is not a solution.
Except of course, possibly for the people that I once considered to be my friends and neighbors.
You see, I live in a very small town.
I am shunned because I will not get a job even though the only jobs that I can find around here pay only $8.00 to $10.00 per hour.
I know what my minimum “nut” is to turn the doors every day and I have decades of skills that I have been building and they are mechanical, software, electronics, and more.
So I decide to start a repair shop because even at $30.00 per hour labor, which is very low as the shops that have been in business for decades are getting $65.00 per hour or more.
But I didn’t count on the small town mentality that believes if you will not get a job, they will keep you down by refusing to trade with you.
Nope, I’m not disgruntled.
I’m just realistic and I will find a way out of this mess because I have my brain, and I have the skills necessary to show these so called Apple (and other) executives what real leadership is.
But I chose to tale my little tale of woe because their are many that do not have my skills to reinvent themselves and you need to comprehend what they, and maybe one of these days yourself are going to go through if we continue on this path.
But wait, it gets worse.
Those corporate executives, and ultra wealthy think that their wealth will protect them no matter the future.
If the Democratic countries (which are forcing Austerity on their people because of the actions of their corporations) fall.
What will replace them?
Communism?
Sharia Law?
Are either of these a beacon of shining light for the oppressed of the world?
Or will they turn off that light for the people of the World?
Trust me, If I was a communist which I’m not, or I believed in Sharia Law which I do not, and I was their leader.
I’m going to need your money to provide for the people so that they do not revolt.
And what happens to you matters not one bit to me.
So tell me.
Is this the future you want for our World?
Good.
I didn’t think so either and I knew you just didn’t look far enough into the future so let’s work together to turn around this nightmare that threatens to destroy Democracy.
It begins with us realizing that inflation is not the boogey man that everybody says it is and that there are only three alternatives to a strong and Democratic Capitalistic society:
- Ever Increasing Wages
- No Wages which is unacceptable to all of us
- Ever Decreasing Wages
Where you went wrong is seeking Ever Increasing Wages for yourselves and forcing Ever Decreasing Wages on the rest of the World.
Inflation is going to happen because of the Greed of the Suppliers.
After all, it is natural to want more just as it is natural to recreate.
Our key is to manage the process somehow, and I’m willing to work with you to develop a solution.
But I can’t do it from where I am at, although I could do it as a United States Senator representing the Great State of Texas.
There are others like me out there that have looked far into the future.
People like Bob Hall.
He too can’t work to develop a solution from the outside looking in.
But he could as the President of the United States of America.
Many of you will not read this which means it will happen.
When, I can’t tell you as their are too many variables.
For those of you that are willing to cast aside your shackles of ideology, we need your help.
You can learn how to help Bob become the President of the United States in the upper right hand side bar.
You can learn about my bid to be the United States Senator representing Texas at VirgilBierschwale.com
You can do your part by hiring Bud by clicking on the article above.
After all, we are all Americans and we all want a prosperous and Democratic Society for our children where our leaders maintain the Balance between the Business communities need for Profit and the People’s right to a life that should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement regardless of social class or circumstances of birth.
We can’t do this by ourselves, but 300 million people reaching across their neighbors fence line to discuss their children’s future can.
It really is that simple.